5 things that can destroy your assets if you are over 55 years old

Between the ages of 55 and 65, maintaining and protecting your assets is crucial to guarantee a solid and peaceful financial future. This stage of life is characterized due to the proximity to retirement, which makes it essential to have the resources necessary to enjoy a comfortable and safe life.

In addition, a solid heritage will allow you to face unforeseen events, leave a legacy your loved ones and take advantage of new opportunities. With the experience accumulated, you will be able to make more strategic financial decisions and ensure your long-term well-being.

That is why, below we leave you a list of 5 factors that can destroy your assets, so you can try to avoid them completely.

1. Not making a budget to achieve your goals:

Not having a budget can have several negative consequences for your financial health, since not having a budget is synonymous with not having goals or clear objectives, so much less can you have a plan on how to achieve them.

For example, do I want to retire in Palm Beach Florida? Or it is not a place where Would I like to live my retirement? Not being clear about things like these, or the budget for them, may result in the following:

● Loss of control over your finances:

Without a budget, it’s easy to lose control. keep track of your income and expenses, which can lead to impulsive spending and not Know where your money goes.

● Difficulty achieving your financial goals:

Whether you want to save for a vacation, buy a house or simply have a savings fund emergency, without a budget it is difficult to draw up a clear and realistic plan to achieve your goals.

● Greater probability of debt:

By not knowing how much you can spend, it is more likely to spend more than you earn, which can lead to hoarding debts and pay high interest.

● Financial stress:

Uncertainty about your financial situation can generate stress and anxiety.

● Difficulty making financial decisions:

Without a clear picture of your finances, it can be difficult to make important decisions, such as changing your work or invest.

Creating a budget may seem like a lot of work, but it’s worth it. A Budgeting will help you take control of your finances, save money and achieve your goals. financial objectives.

2. Not investing in financial education:

Not investing in financial education is like driving without a map. Even if you can reach your destination, you are much more likely to get lost, take wrong paths and even suffer accidents, so if you are over 55 years old, time should not be negotiable and you must invest in financial education.

Even if we hire a Financial Advisor, it is best to have clear financial education bases.

Why is it a risk?

● You can make bad financial decisions:

Without the right knowledge, it is easy to make decisions that could harm your assets in the long term. From investing in financial products that you don’t understand to not taking advantage of savings or investment opportunities.

● You are more vulnerable to fraud:

Lack of financial education makes you more susceptible to falling into financial scams and frauds.

● You may have financial stress:

Uncertainty about your financial situation can cause stress and anxiety.

3. Not investing in health:

Although it may seem like health and finances are separate topics, they are more connected than you imagine. Not investing in health can, without a doubt, put your assets at risk.

How can health affect your finances?

● Unexpected medical expenses:

A serious illness or injury can lead to high medical costs that can deplete your savings and even lead you into debt.

● Low productivity:

Chronic health problems can decrease your ability to work and generate income, directly affecting your assets.

● Decrease in your ability to generate income:

In more serious cases, illnesses can force you to stop working completely, representing a significant loss of income.

● Long-term care costs:

If you need special care in the future, the associated costs can be very high and put a huge strain on your finances.

● Loss of opportunities:

Good health allows you to take advantage of opportunities for personal and professional growth that can generate a greater income in the long term.

4. Buy financial products that you don’t understand:

Buying financial products that you do not fully understand can be a very risky decision for your assets:

Lack of knowledge can lead to impulsive decisions, significant financial losses, and becoming a victim of fraud.

It is crucial that you educate yourself thoroughly about any financial product before investing, and that you consult an expert if you have questions. Remember that your money is valuable and deserves to be protected.

There are different types of experts who can help you, however, the one you could consult with specifically about a question about your portfolio, without having to manage it, is with an Hourly Financial Planner, who you can pay for the hours you need and can tell you if you are on a good financial path, or if there is any opportunity for improvement.

5. Not understanding the difference between investment and savings:

Confusing saving and investing is a common financial mistake. Although both They involve your money, their objectives and characteristics are very different.

The savings prioritizes safety and accessibility for short-term needs. It is possible that you keep savings in accounts with low interest rates but with capital guaranteed.

On the contrary, investment aims for long-term growth through of assets such as stocks or real estate, which carry greater risk due to the possible fluctuations in value.

It is essential to distinguish between the two to make financial decisions informed and achieve your goals. Focusing solely on saving for a long-term goal could hinder the growth of your wealth, while investing all your money can leave you unprepared for short-term needs, and we know that, after At the age of 55, we must have at least some savings for health issues, even if it is for prevention.

So, the ideal strategy incorporates both savings and investment for a balanced financial approach. In conclusion, protecting your financial assets is a smart decision that It requires knowledge and planning. Financial education is your best ally to make informed decisions and build a solid future.

By investing time in learning about investments and financial planning, you will be empowered to take the control of your financial future. Although the information is available to everyone, counting With the advice of a financial professional you can make a difference.

A Hourly Financial Planner will help you create a personalized strategy, identify opportunities and mitigate risks, thus ensuring the preservation and growth of your assets.

Alonso Rodriguez Segarra – CERTIFIED  FINANCIAL PLANNER™

Which provides hourly, fee-only, and fiduciary financial planning services. He has   over 20 years of experience in the financial world and has been named among the   Top 100 Financial Advisors in the US by Investopedia.

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Note: The comments given in this guide are for educational purposes only. Before    making a financial decision, consult your financial advisor or conduct appropriate      research. Remember that historical results are not a guarantee of future returns. In    the comments provided, this guide does not consider tax impacts. Always consult      your particular case with a specialist. We are not your financial advisor, so             remember that each case differs.

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All rights to this guide are reserved, and the occasional mention of third-party       brand names is made solely for educational and reference purposes, without any       interest in financial gain. This information is for educational purposes only and     does not represent an offer of products or services.